NV Energy Inc. (NVE:US) Chief Executive Officer Michael Yackira will receive about $24 million in compensation after retiring from the Nevada utility purchased this week by MidAmerican Energy Holdings Co.
Yackira, 62, will get $15.1 million for his stock and options, about $6 million in cash and about $2.9 million in pension and other benefits, according to an August 2012 “golden parachute” disclosure by Las Vegas-based NV Energy. Much of Yackira’s stock was already owned or earned through his tenure, said Rob Stillwell, a spokesman for NV Energy.
MidAmerican, owned by Warren Buffett’s Berkshire Hathaway Inc. (A:US), announced yesterday that Paul Caudill, 59, was named president of NV Energy. Caudill is a former president of MidAmerican Solar. Yackira plans to retire in June.
“I’m going to do whatever the company wants me to do,” Caudill said today in a telephone interview, when asked whether he might be named CEO. “That, frankly, isn’t my decision.”
Caudill’s “leadership experience means he’s the right choice to help us ensure continued safe, reliable energy for Nevada customers, while helping us explore and invest in greater renewable energy-generation options,” Yackira said in the statement.
Yackira joined NV Energy in 2003 and had been chief financial officer, chief operating officer and president before being named CEO in 2007. He was named chairman of the Edison Electric Institute, a Washington-based trade group, in June.
MidAmerican agreed in May to buy NV Energy for about $5.6 billion in cash to expand in Nevada. Buffett, Berkshire’s chairman and CEO, has boosted investments in capital-intensive businesses as he seeks to allocate funds at his Omaha, Nebraska-based company.
MidAmerican issued $1 billion of common equity to its existing shareholders and $2.59 billion of junior subordinated debt to Berkshire subsidiaries to help fund the deal, according to a filing from the Des Moines, Iowa-based energy company. It also used proceeds from senior debt issued in November.
Berkshire owned 89.8 percent of MidAmerican as of Jan. 31, according to a regulatory filing, with Berkshire director Walter Scott and his family owning most of the rest.
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